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Consolidated Edison Co. of New York v. Entergy Nuclear Indian Point 2, LLC

ELR Citation: 42 ELR 20085
Nos. Nos. 2010-5155, -5157, (Fed. Cir., 04/16/2012)

The Federal Circuit reversed in part a lower court's award of damages in favor of an energy company in a case involving the government's breach of its commitment to dispose of spent nuclear fuel. The court reversed the award of damages relating to the costs of operating a spent fuel pool after the company purchased a nuclear facility in 2001. The company failed to show that it would not have incurred any costs related to the continued operation of the spent fuel pool after acquiring the facility had there been no breach. The court also reversed the lower court's award of $2,148,901 in damages for regulatory fees the company paid to the NRC. The company failed to establish that its fees increased as a result of the breach. In addition, the lower court's denial of damages for certain overhead costs related to mitigation activities was reversed. The company's accounting practices comply with generally accepted accounting principles. But the court affirmed the denial of damages for the cost of capital to fund the mitigation activities.